jacko
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 posted on 19/7/09 at 01:49 PM |
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student finance
Hi all - my daughter is just about to start uni and has applied for student finance loans. If she doesn't get a job where she earns more than
£25,000 a year she won't have to pay the loan back until her earnings are high enough to qualify. If this is the case will she be put on a black
list for finance if she would want to take out any other finance such as buying a car or similar. This question is aimed at students who will have
knowledge of this or former students. Thanks kath
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BigFaceDave
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| posted on 19/7/09 at 01:54 PM |
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My Sister had the same thing exept i think hers was earning over £16,000 and she has only started paying it back in recent years ( she took it out
about 11 years ago) and i dont think she has been put on a black list (doesnt seem to have trouble getting credit).
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blakep82
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| posted on 19/7/09 at 02:01 PM |
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she shouldn't be black listed. she's not breaking any rules on the loan. the rule is you pay back when you earn over x amount. if she
earns over £25k and then still doesn't pay any back, then she'll get in bother
[Edited on 19/7/09 by blakep82]
________________________
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alistairolsen
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| posted on 19/7/09 at 02:06 PM |
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as far as I know it has no bearing on any other credit and the limit is normally 17k.
What degree is she considering doing where shes worried about not getting 25k a year asa graduate?
[Edited on 19/7/09 by alistairolsen]
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wilkingj
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| posted on 19/7/09 at 02:14 PM |
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I would check
http://www.direct.gov.uk/studentfinance
for the current situation.
Quote from the site:
Student Loans have to be paid back - but you don’t have to start making repayments until you’ve left your course and are earning over £15,000.
Once your earnings reach this repayment threshold, you’ll pay back nine per cent of whatever you earn over £15,000. If you’re due to start paying back
your Student Loans from April 2012, you’ll have the option of taking a repayment break of up to five years.
1. The point of a journey is not to arrive.
2. Never take life seriously. Nobody gets out alive anyway.
Best Regards
Geoff
http://www.v8viento.co.uk
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oldtimer
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| posted on 19/7/09 at 02:16 PM |
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No black list stopping her getting credit, just that she would have to declare the debt on any credit application, same as everyone else.
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omega0684
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| posted on 19/7/09 at 02:23 PM |
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its £15,000 not £25,000 AFAIK,
you don't get black listed,
i think they take a percentage cut of each months pay, for instance, they take your monthly salary, times it by 12 and then take 5 %. if the next
month, you earn £500 more than the previous month (overtime etc) then they times that by 12 and take 5%, so you would pay a little more that month
than the previous month. and so on and so on.
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cd.thomson
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| posted on 19/7/09 at 03:11 PM |
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it is 15k because im paying mine off now and I earn 18k
it bears no relation to your credit rating like a normal loan would.
Currently I pay £20 a month towards paying it off - before the interest rates were cut my debt was increasing by £40 per month. You do the math :O
TBH youre never going to pay it off in a sensible timeframe and I just see it as a tax for being educated - fair enough.
[Edited on 19/7/09 by cd.thomson]
Craig
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tomprescott
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| posted on 19/7/09 at 03:23 PM |
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Hi,
Current student, until she earns over 15k she won't have to pay it back and she'll be fine to take out other forms of credit such as for
cars or even a mortgage. The rate at which she will have to pay back the loan will increase in proportion to the amount she earns. Although the loan
is advertised as being interest free, its not. It's a tracker based system so if financially possible its a good idea to save in a cash isa or
similar while your daughter is at uni and then use that to pay off the loan after shes graduated.
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tomprescott
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| posted on 19/7/09 at 03:27 PM |
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quote:
Originally posted by alistairolsen
What degree is she considering doing where shes worried about not getting 25k a year asa graduate?
[Edited on 19/7/09 by alistairolsen]
There is massive competition for post graduate jobs, the labour market works on the same supply and demand principles of any other market, add to that
the effects of recession and most graduates will likely be starting on the circa £20k mark, many a lot lower, and some not at all!
[Edited on 19/7/09 by tomprescott]
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Volvorsport
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| posted on 19/7/09 at 04:04 PM |
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well my threshold is about £2k a month gross , but the rules changed since i took mine out .
mine was over 10 years ago too .
unless she gets a 1st dont count on anything , competition is huge for jobs .
www.dbsmotorsport.co.uk
getting dirty under a bus
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Ben_Copeland
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| posted on 19/7/09 at 04:14 PM |
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quote:
Originally posted by cd.thomson
Currently I pay £20 a month towards paying it off - before the interest rates were cut my debt was increasing by £40 per month. You do the math :O
[Edited on 19/7/09 by cd.thomson]
Mines about £150 a month  
I've only just started paying it back after 6 years.... and i can get credit just fine
Ben
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alistairolsen
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| posted on 19/7/09 at 04:35 PM |
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I first doesnt guarantee anything, Ive spoken to employers who have passed up candidates with a first degree for those with a 2:1 or merit degree
because they seemed too academic. All about the individual.
I didnt mean starting,I meant like actualy not paying it off.
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morcus
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| posted on 19/7/09 at 05:00 PM |
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Its seperate from you other credit stuff.
I wouldn't recomend paying it off, if you've got the money todo so you could easilly invest it in a way to make more intrest than the loan
which is at the true rate of inflation.
Don't worry about it though.
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200mph
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| posted on 19/7/09 at 05:18 PM |
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I got my student loan statement in today - I earn a good wage, yet at current rates I'll have paid the balance off aged 167......
If it isn't broke, fix it until it is
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